PART 7 - INSURANCE REQUIRED

The Company will require two types of insurance - 1. Contents Insurance and 2. Errors & Omissions Insurance. Contents Insurance covers inventory of products, equipment, and supplies. Errors and Omissions Insurance covers authors, publishers, and distributors of literary works from any so called errors, mistakes, and omissions of critical facts etc. Please note: MOST PROFESSIONAL FIRMS CARRY ERRORS AND OMISSIONS INSURANCE.

The Company does not require general liability nor product liability insurance since injuries, accidents, and damage to the property of others has no barring on J&B or its business training product.

Two insurance Companies have been asked to provide a quotation on the two types of insurances needed. Oddly enough, each insurance company provided us with the same yearly premiums. These quotes are as follows;

As indicated under the Company's forecasted financial statements, payment of insurance premiums will commence on a monthly basis. J&B estimates that these premiums will increase by 10% each year; thus resulting in an insurance obligation of $1,595 for 200X, and $1,755 for the year 200Y.